helping Sri Lanka more meaningfully

The economic crisis in Sri Lanka has significantly reduced income, reduced food availability and affordability, and thus increased the risk of food insecurity, especially for the most vulnerable households.

Lower income groups and war-affected families in the north and east have little or no cash reserves, and limited access to resources such as land. The problem is more acute among women-headed households, people with disabilities, ex-combatants, the working class, marginalized caste groups and plantation workers, who are denied access to resources due to several historical injustices such as discrimination and statelessness. These groups, which are facing immediate setbacks amid prolonged tensions, will bear the brunt of the economic crisis as food stocks run out and production costs soar. The depreciating Sri Lankan rupee and the lack of foreign exchange have made it very difficult for the island to import even the most basic of essential commodities, including food and medicines. As a result, the cost of staple food items such as rice, roti and dal has increased by more than 50% in the last six months.

Indian aid

India has now emerged as a leading partner for Sri Lanka. It has provided nearly $3.5 billion in aid this year to manage the setback caused by the economic devastation caused by government inefficiency, mismanagement and corruption. As Sri Lankans gratefully receive food aid from Tamil Nadu, some questions have already arisen about the transparency and fairness of its distribution by the government.

Meanwhile, more thoughtful aid is needed for people, especially the poor, which will only get worse in the months to come. Some also fear they may be put off by the government’s recovery efforts led by the International Monetary Fund programme, which will likely dictate austerity. In this context, the Government of India and the people of Tamil Nadu can go beyond relief and support the Employment Guarantee Scheme, drawing on the experiences of the Mahatma Gandhi National Rural Employment Guarantee Act, for a dignified and sustainable recovery of the economy.

The social safety nets provided by the Sri Lankan state are either inadequate or ineffective. There is no functional public distribution system. The maximum monthly household cash transfer (LKR 4,000, or about 900) provided through the government’s poverty alleviation program, Samridhi, is completely inadequate.

Working people can get relief from the work guarantee scheme which assures 100 to 120 days of work annually. Compensation for this labor may be 70% in kind, such as rice partially purchased in Sri Lanka, as well as wheat, pulses, and other pulses that are not locally available, and kerosene. The remaining 30% can be paid to the employee in cash. The food component combined with cash will ensure that households are protected from inflation. This will support their emotional, physical and nutritional well-being in a respectful manner. The ‘work’ may include strengthening agricultural infrastructure by repairing embankments, channels and drainage. This may include caring for children, the elderly, and patients. This will be especially helpful for working women and elderly and mentally ill family members looking for a caregiver. May also include internships or on-the-job apprenticeships and may be funded by the private sector in India through Corporate Social Responsibility projects.

The United Nations estimates that five million people, or about 20% of Sri Lanka’s poorest, are most at risk. Aid from India could target this group. Reaching one million households, or about 15% of Sri Lanka’s households, this aid could reduce market demand for food and help control demand-driven inflation, thus reducing food prices for other sections of the population as well. can be maintained within reasonable limits.

To facilitate the cash portion of the assistance, the Government of India may purchase LKR against its value in INR thus allowing the Sri Lankan government to use the earned INR for purchase of Indian medical supplies or food. Assistance can be mobilized from Tamil Nadu and other states and NGOs to reduce the cost to the central government.

increase in food production

Addressing this crisis will also require interventions to increase domestic food production. Agricultural production fell by almost 50% in 2021 due to an ill-conceived ban on chemical fertilizers. India has provided a credit facility for importing fertilizers, which is a timely support to encourage farmers to resume farming. But more needs to be done to help small farmers reconnect, grow and maximize farming. Any increase in production will inevitably have a deflationary effect on prices, which can stabilize food prices and contribute to improving the macroeconomic environment.

Funding for specific purposes, including the provision of cheap credit to small farmers and sharing of expertise in good farming practices, the repair, replacement and deployment of farm equipment formerly gifted by the Government of India, and assistance from the management of these schemes. Profits will be assured. directly to the producers. In addition, formulating insurance schemes will encourage farmers to take up farming without fear of loss in the event of drought or floods. Importantly, the Indian government must ensure that the implementation of these programs is just and fair, especially in the context of grievances from Tamil-speaking minorities, who have faced historical boycotts.

India has been generous in helping Sri Lanka. In addition to the $3.5 billion raised so far, more were promised during the recent visit of the Indian Foreign Secretary. Tamil Nadu, which contributes rice and other essential commodities, is now preparing to send 4,500 metric tonnes of rice and other relief materials. Food relief can only ease that hardship until the Sri Lankan state fixes it, which will be several difficult years for recovery.

Currently the credit lines are being used for fuel to meet the needs of private vehicles, while fishermen have insufficient supplies of kerosene for their fishing boats and are close to starvation as a result. Professor Amal Kumarage of Moratuwa University in Sri Lanka explains that while 76% of fuel is consumed for passenger travel, 51% is carried by cars, pickups and SUVs. In comparison, Sri Lanka Transport Board buses consume only 17%.

At the end of the war, the Indian Habitat Program provided significant humanitarian and socio-economic benefits to devastated people and hill country communities in the Northeast. With 50,000 houses built in five years, people also had a house to live in and a livelihood. Such a strategic intervention, which aids recovery and includes respite with respect, should be the basis for any future assistance. The housing program earned goodwill for India. A program to guarantee employment and support production would be a fruitful follow-up to that. Such interference would also be in the interest of India.

SCC Elangovan is a social worker and political activist mostly based in Jaffna, and associated with SJV Chelavanayakam Memorial Trust.